WORLD TRADE  
ORGANIZATION  WT/DS294/22 
12 July 2007 
 
 (07-2961) 
 Original:   English 
  
 
UNITED STATES – LAWS, REGULATIONS AND METHODOLOGY FOR 
CALCULATING DUMPING MARGINS ("ZEROING") 
 
Recourse to Article 21.5 of the DSU by the European Communities
 
 
Request for Consultations 
 
 
 The following communication, dated 9 July 2007, from the delegation of the European Communities to the delegation of the United States and to the Chairman of the Dispute Settlement 
Body, is circulated in accordance with Article 21.5 of the DSU. 
 
_______________ 
 
  On 9 May 2006, the Dispute Settlement Body  (the "DSB") adopted the Appellate Body 
Report and the Panel Report, as modified by the Appellate Body, in the case WT/DS294 " United 
States – Laws, Regulations and Methodology for Calculating Dumping Margins ("Zeroing") ".  The 
resulting DSB rulings found that the United States' administrative practice (the zeroing  methodology 
in original investigations in which the weighted -average-to-weighted-avera ge comparison method is 
used) and other measures (15 original investigations
1 and 16 "administrative reviews"2 in which 
zeroing was used), including each of the assessment in structions issued pursuant to any of one of 
these measures, were inconsistent with Article VI  of the General Agreement on Tariff and Trade 1994 
("GATT 1994") and the Agreement on implementa tion of Article VI of the GATT 1994 (the 
"AD Agreement").  The DSB recommended that the United States brings those measures into 
conformity with its obligations under those Agreements.  
 On 30 May 2006, the United States informed the DSB that it intended to implement the 
recommendations and rulings of the DSB in a ma nner consistent with its  WTO obligations, but 
needed a reasonable period of time to do so. Th e parties agreed under Article 21.3(b) of the 
Understanding on rules and proce dures governing the settlement of disputes ("DSU") that the United 
States would have until 9 April 2007 to implemen t the recommendations and rulings of the DSB 
(WT/DS294/19). 
  On 27 December 2006, the United States publishe d a notice whereby it announced that it was 
abandoning "zeroing" in average-to-average comparis ons in anti-dumping original investigations (see 
Antidumping Proceedings: Calculation of th e Weighted–Average Dumping Margin during an 
Antidumping Investigation; Final Modification  published in 71 FR 77722). The final modification 
                                                     
 
1 Listed in WT/DS294/7/Rev.1, cases 1 to 15 on pages 5-6. 
2 Listed in WT/DS294/7/Rev.1, cases 16 to 31 on pages 14-15. The term "administrative review" is a 
term of US municipal law that is not used in the AD Agreement. A US "administrative review" involves an 
investigation into and a re-calculation of the existence an d degree of an exporter's margin of dumping during the 
review investigation period, contemporaneous with the imports for which final liability is being assessed. An 
"administrative review" investigation also results in th e fixing of a new "cash deposit" rate to be applied 
prospectively to future imports, pending the next "administrative review".  WT/DS294/22 
Page 2  
 
  became effective on 22 February 2007 (see Antidumping Proceedings: Calculation of the Weighted–
Average Dumping Margin in Antidumping Investigations; Change in Effective Date of Final 
Modification,  published in 72 FR 3783, 26 January 2007). 
  Subsequently, the US began a recalculation of the margins of dumping in 12 of the 15 original 
investigations (the anti-dumping measures having been  previously revoked in three of the 15 original 
investigations). The United States issued its final fi ndings in 11 of the original investigations on 9 
April 2007 ("Section 129 determinations")
3 which entered into effect on 23 April 2007 (published in 
72 FR 25261, 4 May 2007).  
 On 4 May 2007, the parties concluded an agreement on the procedures under Articles 21 and 
22 of the DSU ("sequencing agreement")
4 with a view to facilitating the procedures for a resolution of 
the dispute.   The European Communities considers that the following aspects of the measures taken by the 
US to comply with its WTO obligations are unsatisfactory: 
 1. The Section 129 determinations entered into  force on 23 April 2007, not on the date of 
9 April 2007 as agreed by the parties under Article  21.3(b) of the DSU. This is inconsistent 
with Article 17(14) and Article 21, including 21.3 and 21.3(b) of the DSU and with the 
agreement between the parties concerning the reasonable period of time. 
 
2. The US failed to properly implement the DS B recommendations and rulings with respect to 
the 16 administrative reviews found to be incons istent with the US' WTO obligations since 
"zeroing" was not eliminated in any of the a bove-mentioned measures. Th is is inconsistent 
with Article 2, including 2.1, 2.4 and 2.4.2, Article 9.3 and Article 11, including Article 11.1 
and 11.2 of the AD Agreement  and Article VI:2 of the GATT 1994. 
 3. With respect to Case No. 11 - Stainless Steel Sheet and Strip in Coils from Italy  (A-475-824 ), 
which concerns an original investigation, in respect of which there have been a number of 
subsequent review investigations, the US  failed to properly implement the DSB 
recommendations and rulings since to date "zeroing" has not been eliminated and duties 
calculated with zeroing continue to be imposed, co llected or liquidated. This is inconsistent 
with Article 2, including 2.1, 2.4 and 2.4.2, Article 5.8, Article 9.3 and Article 11, including 
11.1 and 11.2 of the AD Agreement  and Article VI:2 of the GATT 1994. 
 4. With respect to all measures (original inves tigations and administrative reviews) that were 
found inconsistent with the US' WTO obligations , the US continues to impose, collect or 
liquidate anti-dumping duties at a rate inflated by "zeroing" beyond 9 April 2007. With regard 
to those measures which were revoked by the S ection 129 determinations, the US continues to 
impose, collect or liquidate anti-dumping duties after 9 April 2007. This is inconsistent with Article 2, including 2.1, 2.4 and 2.4.2, Article 5.8, Article 9.3 and Article 11, including 11.1 
and 11.2 of the AD Agreement  and Articles VI:1 and VI:2 of the GATT 1994. 
 
5. In three cases (Case No. 2: Stainless Steel Bar from France (A-427-820), Case No. 4: 
Stainless Steel Bar from Italy (A-475-829) and Case No. 5:  Stainless Steel Bar from the 
United Kingdom (A-412-822) ) in the Section 129 determinati ons, which concerned original 
                                                     
 
3 The term "Section 129 determination" is a term of US municipal law that is not used in the AD 
Agreement. It is used in this consultation request withou t prejudice to the correct cat egorisation of the measures 
at issue under one or more provisions of the AD Agreement.  
4 "Understanding between the United States and the European Communities Regarding Procedures 
under Articles 21 and 22 of the DSU" (WT/DS294/21, 9 May 2007).  WT/DS294/22 
 Page 3 
 
 
  investigations, the US re-determinations led to an unjustified increase in the "all others rate". 
This is inconsistent with Article 2, Article 5. 8, Article 6.8 and Annex II, Article 9, including 
9.2, 9.3 and 9.4, and Article 18.1 of the AD Agreement . 
 6. With respect to original investigations in  which the recalculation of dumping margins led to 
the conclusion that some expor ters were not dumping or had de minimis  dumping margins, 
the US maintained the Anti-Dumping order without establishing whether the remaining 
amount of dumped imports was causing injury to the domestic industry and whether this volume of dumped imports was not negligible. This is inconsistent with Articles 3.1, 3.2, 3.5, 
5.8 of the AD Agreement  and Article VI:1 of the GATT 1994. 
 
7. With regard to the 15 original investiga tions and 16 administrative reviews, the US has 
continued zeroing in the administrative reviews of these measures that now determine the cash deposit rates and in other reviews of these measures. Details of the reviews in question 
are set out in the annex. This is inconsistent  with Article 2, including 2.1, 2.4 and 2.4.2, 
Article 9.3, and Article 11, including 11.1, 11.2 and 11.3 of the AD Agreement  and 
Articles VI:1 and VI:2 of the GATT 1994. 
  The European Communities therefore considers that there exists a disagreement as to the 
existence or consistency with a c overed agreement of the measures taken to comply with the rulings 
and recommendations of the DSB. 
 
 For the reasons mentioned above, and without prejudice to its rights under the WTO, the European Communities hereby requests the United St ates of America to ente r into consultations under 
Article XXII:1 of the GATT 1994, Articles 4 and 21.5 of the DSU, Article 17 of the AD Agreement  and 
Paragraph 1 of the sequencing agreement, with respect to the issues identified above. 
 
 The European Communities reserves its rights in  respect of all other aspects of the United 
States' purported compliance with its obligations in this case.   We look forward to receiving your reply to the present request and to fixing a mutually 
convenient date for consultations. 
  
  WT/DS294/22 
Page 4 ANNEX  
 
 
I. Reviews of the measures imposed in the 15 original investigations condemned in DS294  
 
Product MS DOC Case 
Number 
(ITC Case 
No) DOC Final Determination ITC Determination AD Order Subsequent reviews 
1.  Certain hot-rolled 
carbon steel NL A-421-807 
(A-903) 66 FR 50408, October 3, 2001 
(amended:  66 FR 55637, 
November 2, 2001) November 2001 66 FR 59565, 
November 29, 2001 Administrative Reviews 
3 May 2001 – 31 Oct 2002 
(69FR 43801, July 22 2004) 
4.8% 
 
1 Nov 2002 – 31 Oct 2003 
(70FR 18366, April 11, 2005) 
4.42% 
 
1 Nov 2004 – 31 Oct 2005 
(72FR 34441, June 22, 2007) 
2.26% 
 
2.  Stainless steel bar F A-427-820 
(A-913) 67 FR 3143, January 23, 2002 February 2002 67 FR 10385, 
March 7, 2002 Administrative Reviews: 
 
1 March 2003 – 29 February 2004 (70 FR 46482, 
August 10, 2005) 
Ugitech 14.98% 
 
1 March 2004 – 28 February 
2005 (71 FR 30873, May 31 
2006) 
Ugitech 9.68% 
 
Sunset Review: DOC Final 
Determination 72 FR 30772, June 4, 2007 
  
   WT/DS294/22
 Page 5Product MS DOC Case 
Number 
(ITC Case 
No) DOC Final Determination ITC Determination AD Order Subsequent reviews 
3.  Stainless steel bar G A-428-830 
(A-914) 67 FR 3159, January 23, 2002 
(amended:  67 FR 10382, March 7, 
2002) February 2002 67 FR 10382, 
March 7, 2002 Administrative Reviews: 
 
2 August 2001–28 February 2003  
(69 FR 32982, June 14, 2004) 
BGH 0.52% 
 
 
1 March 2004–28 February 2005 
(71 FR 52063, September 1, 
2006) 
BGH 0.73% 
 
 
Sunset Review: DOC 
Preliminary  Determination 
72 FR 29970, May 30, 2007 
 
4.  Stainless steel bar I A-475-829 
(A-915) 67 FR 3155, January 23, 2002 
(amended:  67 FR 8228, February 22, 2002) February 2002 67 FR 10384, 
March 7, 2002 Administrative Review: 
 
2 August 2001–28 February 
2003 
(69 FR 32984, June 14, 2004) 
Foroni 4.03% 
Ugine 33% 
  
Sunset Review: DOC Final 
Determination 72 FR 30772, June 4, 2007 
  
  WT/DS294/22 
Page 6 Product MS DOC Case 
Number 
(ITC Case 
No) DOC Final Determination ITC Determination AD Order Subsequent reviews 
5.  Stainless steel bar UK A-412-822 
(A-918) 67 FR 3146, January 23, 2002 February 2002 67 FR 10381, March 7, 
2002 Administrative review : 
 
1 March 2005 – 28 February 2006(72 FR 15106, March 
30, 2007)  Enpar Special 
Alloys 33.87% 
 
Sunset Review: 
DOC Final Determination 72 
FR 30772, June 4, 2007  
 
6.  Stainless Steel Wire 
Rod SW A-401-806 
(A-774) 63 FR40449,  July 29,1998 September 1998 63 FR49329, 
September 15, 1998  Administrative reviews : 
 1 Sept. 2004 – 31 August 
2005 (72FR 26337, May 9, 
2007) 
Fagersta 19.36% 
 Sunset Review: 
Continuation order, 69 FR 
50167, August 13, 2004  
7.  Stainless Steel Wire 
Rod E A-469-807 
(A-773) 63 FR40391, July 29,1998 September 1998 63 FR 49330,  
September 15, 1998 Administrative review : 
 
5 March 1998 – 31 August 1999 (66 FR 10988, February 
21, 2001) Roldan SA 0,8 % 
 
Sunset Review: 
Continuation Order  
69FR 50167, August 13, 2004 
 
8.  Stainless Steel Wire 
Rod I A-475-820 
(A-770) 63 FR40422, July 29,1998 September 1998 63 FR 49327,  
September 15, 1998 Sunset Review: 
Continuation Order  
69FR 50167, August 13, 2004   
   WT/DS294/22
 Page 7Product MS DOC Case 
Number 
(ITC Case 
No) DOC Final Determination ITC Determination AD Order Subsequent reviews 
9.  Certain Stainless 
Steel Plate in Coils B A-423-808 
(A-788) 64 FR15476, March 31, 1999 May 1999 64 FR 27756,  
May 21, 1999 
(amended by 68 FR 20114 April 24, 2003) See case 18 below 
 
 
10.  Stainless Steel 
Sheet and Strip in 
Coils F A-427-814 
(A-797) 64 FR30820, June 8, 1999 July 1999 64 FR 40562,  
July 27, 1999 See Cases 25 & 26 below 
 
Measure revoked   July 2004 
(70 FR 44894, August 4, 
2005) 
 
11.  Stainless Steel Sheet and Strip in 
Coils I A-475-824 
(A-799) 64 FR30750, June 8, 1999 July 1999 64 FR 40567,  
July 27, 1999 See cases 21 & 22 below 
12.  Stainless Steel 
Sheet and Strip in Coils UK A-412-818 
(A-804) 64 FR30688, June 8,1999 July 1999 64 FR 40555,  
July 27,1999 Measure revoked : July 2004 
(70 FR 44894, August 4, 2005) 
 
13.  Certain Cut-to-
Length Carbon-Quality 
Steel Plate F A-427-816 
(A-816) 64 FR73143, December 29,1999 Fe bruary 2000 65 FR 6585,  
February 10, 2000 Measure revoked : February 
2005 (70 FR 72787, 
December 7, 2005) 
 
14.  Certain Cut-to-Length Carbon-Quality 
Steel Plate 
 I A-475-826 
(A-819) 64 FR73234, December 29,1999 Fe bruary 2000 65 FR 6585,  
February 10, 2000 Sunset review: 
 
Continuation Order (70FR 
72607, Decembe r 6, 2005) 
 
15.  Certain Pasta I A-475-818 
A-734) 61 FR30326, June 14, 1996 
(amended by 66 FR65889, 
December 21,2001) July 1996 61 FR38547  
July 24, 1996  
 See Cases 19 & 20 below 
  
  WT/DS294/22 
Page 8 II. Reviews subsequent to the 16 administrative reviews condemned in DS294  
 
Product MS No Case Final Results Company  
Subsequent Reviews 
16.  Industrial 
Nitrocellulose F A-427-009 66 FR 54213, 
October 26, 2001 
 Bergerac NC Two subsequent Administrative reviews were 
rescinded, covering the periods : 
1 August 2000 – 31 July 2001 
1 August 2002 – 31 July 2003  
Measure revoked  : (69 FR 52231, August 25, 2004) 
 
17.  Industrial Nitrocellulose UK A-412-803 67 FR 77747, 
December 19, 2002 
 Imperial Chemical 
Industries Two subsequent Administrative reviews were 
rescinded, covering the periods : 
1 July 2001 – 30 June 2002 
1 July 2002 – 30 June 2003  
Changed circumstance review (Dec, 2003) confirmed 
the rate of 3.06% to apply to Troon Investments, successor to ICI 
 
Measure revoked  : (69 FR 52231, August 25, 2004) 
 
18.  Stainless steel 
plate in coils B A-423-808 67 FR 64352, October 18, 2002 ALZ NV & 
TrefilARBED (affiliated US importer) – Same 
company Ugine & ALZ, 
N.V. Belgium (U&A Belgium). Two subsequent reviews resulting in change to rate: 
 1 May 2002 – 30 April 2003 
(70FR 2999, January 19, 2005) 
2.71% 
 
1 May 2003 – 30 April 2004 
(70FR 72789, December 7, 2005) 
2.96% 
 
Sunset Review: Continuation Order 70 FR 41202, 
July 18, 2005  
  
   WT/DS294/22
 Page 9Product MS No Case Final Results Company  
Subsequent Reviews 
19.  Certain pasta I A-475-818 67 FR 300, January 3, 2002 
Amended : 67 FR 5088, 
February 4, 2002 1) Ferrara  
  
 
2) Pallante
 
 
 
 3) PAM
 
 Ferrara: Order revoked in February 2005 following 
third consecutive review  where the company had 
de minimis  rate (70FR6832, February 9, 2005) 
 
Pallante: Order revoked in  November 2005 following 
third consecutive review  where the company had 
de minimis  rate (70 FR71464, November 29, 2005) 
 PAM
: Two subsequent reviews resulting in change to 
rate: 
 1 July 2001 – 30 June 2002 
(69FR 6255, February 10, 2004) 
45.49% 
 
1 July 2002 – 30 June 2003 
(70FR 6832, February 9, 2005) 
4.78% 
 
Sunset review: DOC Final Determination 72FR 5266 
February 5, 2007 
 
20.  Certain pasta I A-475-818 68 FR 6882, February 11, 2003 
 Pastifi Garofalo One subsequent re view resulting in change to rate: 
 
1 July 2001 – 30 June 2002 
(69 FR 22761, April 27, 2004) 
2.57% 
 
One review rescinded covering period: 
1 July 2002 – 30 June 2003  
 
21.  Stainless steel 
sheet strip coils I A-475-824 67 FR 1715, January 14, 2002 
 Acciai Speciali Terni 
SpA  See Case 22  
  WT/DS294/22 
Page 10 Product MS No Case Final Results Company  
Subsequent Reviews 
22.  Stainless steel 
sheet strip coils I A-475-824 68 FR 6719, February 10, 2003 
 Acciai Speciali Terni 
SpA Two subsequent reviews resulting in change to rate: 
 1 July 2001 – 30 June 2002 
(68FR 69382, December 12, 2003) 
1.62% 
 
1 July 2002 – 30 June 2003 
(70FR 13009, March 17, 2005) 
3.73% 
 
Sunset review: Continuation Order 70 FR 44886, 
August 4, 2005  
 
23.  Granular 
polytetrafluoenthylene I A-475-703 67 FR 1960, January 15, 2002 
 Ausimont SpA See Case 24 
 
24.  Granular polytetrafluoenthylene I A-475-703 68 FR 2007, January 15, 2003 
 Ausimont SpA Two subsequent Administrative reviews were 
rescinded, covering the periods : 
1 August 2002 – 31 July 2003 
1 August 2003 – 31 July 2004 
 
Changed circumstance review (May,2003) confirmed the rate of 12.08% to apply to Solvay Solexis, successor 
to Ausimont 
 1 subsequent review resulting in change to rate: 
 
1 August 2004 – 31 July  2005 (72FR 1980, January 17, 2007 
39.13% 
 
Sunset review: Continuation Order 70FR 76026, 
Dec. 22, 2005  
 
25.  Stainless steel sheet strip coils 
 F A-427-814 67 FR 6493, February 12, 2002 
Amended
: 67 FR 12522, March 19, 
2002 
 Ugine See Case 26  
   WT/DS294/22
 Page 11Product MS No Case Final Results Company  
Subsequent Reviews 
26.  Stainless steel 
sheet strip coils  F A-427-814 67 FR 78773 , December 26, 2002  
Amended
: 
68 FR 4171, January 28, 2003 
 Ugine 3 subsequent reviews resulting in change to rate: 
 1 July 2001 – 30 June 2002 
(68FR 69379, December 12, 2003) 
2.93% 
 
1 July 2002 – 30 June 2003 
(70 FR 7240, February 11, 2005) 
9.65% 
 
1 July 2003 – 30 June 2004 (71 FR 6269, February 7, 2006) 
12.31% 
 
Measure revoked :  70 FR 44894, August 4, 2005 
27.  Stainless steel 
sheet strip coils G A-428-825 67 FR 7668, February 20, 2002  
Amended : 67 FR 15178, March 29, 
2002 
 KTN See Case 28 
28.  Stainless steel 
sheet strip coils G A-428-825 68 FR 6716, February 10, 2003  
Amended : 68 FR 14193, March 24, 
2003 
 TKN (successor in 
interest of KTN) 4 subsequent reviews resulting in change to rate: 
 1 July 2001 – 30 June 2002 
(69FR 6262, February 10, 2004) 3.72% 
 
1 July 2002 – 30 June 2003 
(69 FR 75930, December 20, 2004)  7.03% 
 1 July 2003 – 30 June 2004 
(70 FR 73729 December 13, 2005) 9.5% 
 1 July 2004 – 30 June 2005 
(71 FR 74897, December 13, 2006) 2.45% 
 
Sunset review: Continuation Order 70 FR 44886, 
August 4 2005  
  
  WT/DS294/22 
Page 12 Product MS No Case Final Results Company  
Subsequent Reviews 
29.  Ball bearings F A-427-801 67 FR 55780, August 30, 2002 
 SKF France SA and 
Sarma SKF: 4 subsequent reviews resulting in change to rate: 
 1 May 2001 – 30 April 2002 
68 FR 43712, July 24, 2003 
6.70% 
 
1 May 2002 – 30 April 2003 
69 FR 55574, September 15, 2004 
5.25%  
 
1 May 2003 – 30 April 2004 70 FR 54711, September 16, 2005 
8.41%  
 
1 May 2004 – 30 April 2005 
71 FR 40064, July 14, 2006 
12.57% 
 
Sunset Reviews: Continuation Order 71 FR 54469, 
September 15, 2006 
 
30.  Ball bearings I A-475-801 67 FR 55780, August 30, 2002 
 FAG Italia SpA 
 FAG : 4 subsequent reviews resulting in change to rate: 
 1 May 2001 – 30 April 2002 
68 FR 35623, June 16, 2003 
2.87% 
 
1 May 2002 – 30 April 2003 
69 FR 55574, September 15, 2004 
4.79%  
 
1 May 2003 – 30 April 2004 70 FR 54711, September 16, 2005 
5.88%  
 
1 May 2004 – 30 April 2005 
71 FR 40064, July 14, 2006 
2.52% 
  
   WT/DS294/22
 Page 13Product MS No Case Final Results Company  
Subsequent Reviews 
    SKF Industrie SpA SKF:  4 subsequent reviews resulting in change to rate: 
 1 May 2001 – 30 April 2002 
68 FR 35623, June 16, 2003 
5.08% 
 
1 May 2002 – 30 April 2003 
69 FR 55574, September 15, 2004 
1.38%  
 
1 May 2003 – 30 April 2004 70 FR 54711, September 16, 2005 
2.59%  
 
1 May 2004 – 30 April 2005 
71 FR 40064, July 14, 2006 
7.65% 
 
Sunset Reviews: Continuation Order 71 FR 54469, 
September 15, 2006 
 
31.  Ball bearings UK A-412-801 67 FR 55780, August 30, 2002 
 NSK Bearings Europe 
Ltd  
The Barden Corporation 
UK NSK Bearings: 
No subsequent administrative reviews 
  
Barden
: 1 subsequent administrative review rescinded 
for period: 1 May 2001 – 30 April 2002  
2 subsequent reviews resulting in change to rate: 
 1 May 2002 – 30 April 2003 
69 FR 55574, September 15, 2004 
4.10%  
 
1 May 2003 – 30 April 2004 
70 FR 54711, September 16, 2005 
2.78% 
 
Sunset Reviews: Continuation Order 71 FR 54469, 
September 15, 2006 
 
__________